November 2021 Real Estate Snapshot

Greater Denver Metro Real Estate Market November Trends Report Gives Buyers and Sellers A Reason For Gratitude This Holiday Season

In a year of continued turbulence, October represented a month of relative ease in the bumpy Denver real estate market, signaling gratitude across the housing industry. Across the board, the majority of statistics were seasonally consistent with what Denver has seen in years past, boding well for more households having the ability to host a Thanksgiving dinner. With prices staying consistent month-over-month, the door has opened for buyers that were previously exhibiting burnout in the home search process.

In the month-end active inventory, Denver saw that when lower numbers change, they yield higher percentages. At the end of October, there were 3,376 properties on the market, a 14.98 percent decrease from the previous month. The amount of listings also decreased by 13.28 percent, showing minimal changes in the month-end inventory.

There were over three times more single-family properties closed last month in the $500,000-$750,000 category than any other price point. However, currently there are more single-family detached properties available over $1 million than any other price point, which is far less surprising than the quantity of for sale properties between $500,000-$750,000. 

The DMAR Market Trends Committee releases reports monthly, highlighting important trends and market activity emerging across the Denver metropolitan area. Reports include data for Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park counties. Data for the report was sourced from REcolorado® (November 3, 2021) and interpreted by DMAR.

October 2021 Real Estate Snapshot

Photo by: @WalnutStreetPhotography

After Realtors® felt a relative slow down and seasonal return in July and August, September felt back to the normal red-hot speed in today’s housing market. Closed properties were 12.81 percent lower than last month at this time and a notable 19.27 percent lower than last September. With lower inventory and fewer homes, the balance of supply and demand stayed steady, leading to another month of competition for buyers. Months of inventory increased to .76 and while it may not have felt like a huge increase, it gave potential buyers a few more options.

Excluding the $0 to $99,000 homes, the most competitive market ranked in the $300,000 to $399,999 range. This price point had 0.51 months of inventory with a surprising 218 closed properties, showing that one can indeed still find a single-family detached property under $400,000. 

The least competitive market was attached properties over $1 million. While there were still 56 attached properties that sold over $1 million, the month-of-inventory for this category was 2.16, more than four times less competitive than the $300,000 to $400,000 and the $400,000 to $500,000 range.

“Even though prices are up over 15.11 percent year-over-year, now is still a great time to buy,” commented Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “With interest rates low and expected to increase, plus a seasonal increase in inventory, waiting will only cost a potential buyer more money in the future. We continue to see more houses being purchased this year than any of the previous five years and this will likely hold for the remainder of the year.” 

Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999). 

In September, the Luxury Market remained strong with a slight slowdown that saw 501 new listings hit the market, and inventory up 4.81 percent from one month ago and 15.17 percent year-over-year.  

While the market had a little boost in inventory, 418 of those new listings went into pending status, down 6.70 percent from one month ago, but up 5.56 percent year-over-year. Buyers still had to move quickly as the average days on market for a residential Luxury home was 21 days, down 12.50 percent from one month ago, and down 58 percent year-over-year. However, sellers didn’t mind the quick move because they received 101.28 percent over list price, down 0.22 percent month-over-month, but up 2.99 percent year-over-year. 

“The big question on everyone’s mind is whether or not we will see the housing bubble burst, but the data continues to show that it’s simply not going to,” said Brigette Modglin, DMAR Market Trends Committee member and Metro Denver Realtor®. “In the Luxury Market, we can celebrate and be grateful for a little more inventory coming into the market and buyers having a little more time to make decisions on a home.”

The detached Luxury market saw 445 new listings, with 362 going into pending status and 383 closing in September at 101.54 percent over list price. Meanwhile, the attached Luxury Market saw 56 new listings pop up, 56 head into pending and 56 close. Overall, buyers had a little more negotiating power in the Luxury attached market, with attached homes selling for 99.57 percent to list price and within an average of 25 days

The DMAR Market Trends Committee releases reports monthly, highlighting important trends and market activity emerging across the Denver metropolitan area. Reports include data for Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park counties. Data for the report was sourced from REcolorado® (October 4, 2021) and interpreted by DMAR.

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September 2021 Real Estate Snapshot

Greater Denver Metro Real Estate Market Trends Report Demonstrates A Predictable Cruise Control Into Seasonality

Keeping in trend with traditional seasonality, the transition from July to August felt like a shift as vacations slowed down in preparation for the school year and fall. Buyers are more willing to be patient in order to find the right house for the “right” price. The report saw this reflected in the days in MLS, which increased from nine to 11 in August 2021. Likewise, the close-price-to-list-price ratio dipped ever so slightly month-over-month. In a dramatic data point, the month-end active inventory dropped 11.69 percent. Historically speaking, the change in inventory is relatively consistent from July to August. 

However, with both inventory and new listings decreasing, the short-lived “loose grip” on inventory has tightened once again. Months of inventory decreased from the previous month to 0.637. The report also indicated that if no one were to put a property on the market for 19 days, there would be nothing to sell in the entire Denver Metro area.

“Recalibration is a daily practice as a Realtor® and as the market shifts so do our strategies,” said Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “As we approach the winter with seasonality in effect, if you are a seller and not thinking of selling for a few months, consider taking professional photos while the sun is out and the snow is not in your yard. When you do decide to sell, you can use those green grass photos to show off what your house will look like in the summertime. If you are a buyer in a unique situation, whether you have less money to put down or are needing a longer close, you may want to look at properties that have been on the market longer than a week.”

While month-end active inventory is historically low for August, this month’s report showed there are plenty of opportunities. There have been 5.76 percent more homes purchased this year in the Denver Metro area than last year at this time. Buyers continue to benefit from low interest rates and an increase in days in the MLS that has resulted in the Denver Metro area selling over five billion more sales volume this year than last year at this time.

Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999). 

In August 2021, the Luxury Market remained strong overall. New listings dipped 18.56 percent from 598 homes to 487 and closed sales were down 13.97 percent, with sales volume trailing behind with a 12.65 percent lag. Following the trend of sluggish numbers, the average days in MLS shot up 71.43 percent from 14 days last month to 24 days. 

Detached homes experienced a shift but fared well in August with 413 new listings and 410 closed properties. However, new listings dipped by 19.34 percent from last month, while closed sales dropped 15.98 percent from 488 homes to 410. The most promising news in the detached market is that pending sales climbed slightly month-over-month by 8.24 percent, with 407 homes currently under pending status. 

The attached segment of the market marched to a different drum with new listings down 13.95 percent to 74 while pending sales dropped 24.24 percent to 50 homes. Closed sales increased slightly from 49 homes to 52 resulting in a slight increase in sales volume. Average days in the MLS jumped 100 percent from 30 days to 60 days while the median days jumped 83.33 percent to 11 days.

“Back to school can be a tough transition, trading laid-back days with no agenda for rushed morning drop-offs,” said Libby Levinson-Katz, DMAR Market Trends Committee member and Metro Denver Realtor®. “The Luxury Market experienced a similar transition as Denverites took advantage of end-of-summer vacations to get out of the heat. Traditionally, when the Denver heat index soars, the market cools as buyers head to the hills in search of cooler temperatures.”

The DMAR Market Trends Committee releases reports monthly, highlighting important trends and market activity emerging across the Denver metropolitan area. Reports include data for Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park counties. Data for the report was sourced from REcolorado® (September 4, 2021) and interpreted by DMAR.

August 2021 Real Estate Snapshot

July 2021 data demonstrates that the pool of buyers continues to shrink in terms of affordability while sellers continue to list their homes in expectations of it selling higher.

While still in a robust seller's market, the July 2021 report indicates that as we head into fall, buyers will start to have more time to review properties and less competition on the number of offers overall. The July residential real estate market reported an increased inventory of 29.92 percent, while it also represented a decrease in closings of 12.30 percent compared to the previous month, indicating a supply increase and demand decrease.

While the average closed price was 16.40 percent higher this July than July 2020 and July represented the lowest number of active properties at month's end in July’s history, with an inventory of only 4,056 properties, this number actually increased from June to July, reflecting the flow of the market.